Mortgage Rates Fall for the First Time in Three Weeks
According to data from Freddie Mac, in the week ending June 8, the 30-year fixed-rate mortgage averaged 6.71%, down from 6.79% the week prior. A year ago the 30-year fixed rate was 5.23%.
“While elevated rates and other affordability challenges remain, inventory continues to be the biggest obstacle for prospective homebuyers,” said Sam Khater, Freddie Mac’s chief economist.
According to CNN Business, with rates much higher now than the fixed rate that many current homeowners bought or refinanced into, they are reluctant to put their homes on the market and trade their ultra-low interest rate for something much higher. This is leading to low inventory of homes to buy.
Mortgage rates topped 5% for the first time since 2011 a little more than a year ago and have remained over 5% for all but one week during the past year. Since then they have gone as high as 7.08%, last reached in November. Since mid-March, rates have gone up and down but stayed under 6.5% until last week.
